UK on track to becoming a tech superpower
New data reveals the IT and information services industry has seen the biggest improvement in productivity – growing by 13.71% year-on-year (YOY) since Q4 2022.
The Business Productivity Index, by ECI Software Solutions, reveals the 20 industries have seen the biggest leap in productivity and the least. Between January to March 2023, the total register for public companies increased by 63,462 – 8.2% more than the same period in the previous year.
ECI’s Business Productivity Index analysed Office for National Statistics (ONS) data to see which industry’s productivity has grown the most, YOY. To create the business productivity index, the ECI used ONS productivity overview data from 20 industries relating to the final quarter of 2022, which was segmented by industry and year, to understand percentage change over time.
The IT and information productivity growth of 13.71% – validates the UK’s drive toward becoming a technology and science superpower – with more than three million people working in UK tech. Since the ONS started measuring labour productivity, its average lifetime output sits at 74.79, while in 2022 it reached 121.1.
Productivity growth for businesses manufacturing food products, beverages and tobacco rose the least YOY, by just 2.02%. This was the only manufacturing sub-sector featured on the list to experience an increase in productivity. Production of transport equipment products took the biggest productivity hit, falling by 7.98% when compared to the same period last year.
Four other sectors of manufacturing also suffered a productivity loss – the manufacture of wood and paper products, printing and reproduction of recorded media fell by 2.77%; the manufacture of chemicals, chemical products and basic pharmaceutical products fell by 4.21%; and the manufacture of computer, electronic and optical products and electrical equipment fell by 4.64%. Although the manufacture of basic metals and fabricated metal products fell by 7.98%, this industry’s lifetime average is the highest on the list, at 100.48 points. In comparison, the average lifetime output for real estate activities (excluding imputed rental) sits at just 70.75 overall and is the lowest.
Beyond manufacturing, the industry with the biggest YOY productivity decrease was real estate activities, which decreased by 3.60%, and production which fell by 2.50%. The ONS has created a calculator for businesses to understand how productive they currently are.
Chris Fisher, VP of EMEA, LBMH at ECI Software Solutions said: “There’s a real push to improve productivity across the UK, getting us up to speed with some of our global peers. Recent statistics show that, across all industries, productivity is still at the same level as it was before the pandemic – though it has managed to successfully rise above the 2020 dip. Manufacturing seems to be particularly harshly hit and likely to be reeling from the effects of Covid-19 yet it also poses the most exciting opportunity. Data and IT services are becoming more accessible – and in turn, manufacturing businesses are well placed to make the most of the innovations coming out of the sector to help it work smart in the future.”
ECI’s Business Productivity Index can be viewed online here.